This is a 38-year-old niche internet-based motor vehicle dealer specializing in a segment of the industry with very high margins. Gross profit per sale averages $12,000 or more. Almost 90% of the business is developed from their websites and social media leads, with a significant repeat business component. More than 75% of all vehicle sales are completed online or by telephone with end-users and other dealers from all over the country and beyond.
The business has a New York dealer license valid for sales and purchases in all 50 states and beyond and is fully insured. The business is operated with low overhead by a small staff from a comfortable and easily accessible office space on Long Island, NY. In addition to the owner, there are three key full-time employees and one part-time employee. All would be willing to stay with a new owner as long as they were treated fairly. The owner would also be willing to stay on for a sufficient training and transition period and as a salesperson, purchasing agent, or consultant thereafter. In 2022, the business had gross sales of over $2,600,000 with an owner's cash flow of over $780,000. In 2023, the business had gross sales of $2,964,728.93 with an owner's cash flow of $1,020,905. There has been a consistent upward trend for the past 3 years. A great bounce-back year after the pandemic.
Financial and sales results for 2023 exceed all prior years, and these figures have been professionally CPA-vetted. With new vehicles being scarce due to supply chain issues and good used vehicles extremely hard to find in the USA, this business has increased profit per unit and market share. All sales are well-documented, as all vehicle sales must be registered with the NY State Department of Motor Vehicles and have been forensically examined. The business is in excellent financial condition and has substantial room for growth. There is potential to add vehicle financing, extended warranty sales, expand the volume of vehicles for sale, and additional accessory sales. The asking price for the business is $2.2 million. For seller financing, we seek a serious and financially qualified buyer with at least $2.1 million . in liquid funds ($1,700,000 to cover the down payment, plus an additional $400,000 for the current inventory).
The business has been SBA pre-qualified. For SBA financing, we are seeking proof of funds for at least $780K. (30% of the $2.2 mil asking price plus $400K in inventory). The SBA will also require previous business experience (ideally in this or a related field), strong credit stores (700 or better), and collateral to back the loan. The owner will stay on for at least three months as a mentor. A qualified buyer can obtain vehicle financing for the inventory against the vehicle titles if needed. You do not need a motor vehicle sales background since the Operations and Office Manager and staff have handled thousands of sales and purchases over the last several years, however, a financial or internet sales background would be a plus. All buyer-seller calls and meetings must be scheduled by appointment only after providing proof of liquid funds.
